REC transfers two project specific SPVs to PowerGrid

REC announced that Fatehgarh Bhadla Transco (FBTL), a special purpose vehicle (SPV) and wholly owned subsidiary of REC Power Distribution Company (RECPDCL), which is a wholly owned subsidiary of REC, was incorporated for Transmission system strengthening for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under Phase II-Part B.

Further, Sikar New Transmission (SNTL), another SPV and subsidiary of RECPDCL was incorporated for Transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under Phase II - Part C.

The above SPVs were to be transferred to the successful bidder selected through tariff based competitive bidding process (TBCB).

After successful completion of TBCB process, Power Grid Corporation of India emerged as successful bidder for the said projects.

Accordingly, after receipt of consideration comprising of professional fee for bid process coordination and reimbursement of expenditure incurred on the project by RECPDCL, interest cost etc., the entire shareholding of FBTL and SNTL, comprising of 50,000 equity shares, presently held by RECPDCL, has been transferred at par value along with all its assets and liabilities on 04 June 2021 to Power Grid Corporation of India.

Hence, with effect from the aforesaid date, the above project specific SPVs are not subsidiaries of RECPDCL & REC.

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